Canada – U.S. relationship will continue to be strong,Trump ally says

Chrystia Freeland has called him a “proof point” of the enduring Canada-U.S. relationship. Fortune Magazine has asked if he could be the Elon Musk of steel.

 

But Lourenco Goncalves says Canada’s trade partnership with the U.S. can thrive during Donald Trump’s second administration because of the close ties between the two nations.

 

“I really have conviction that the economic, political and social relationship between our two countries is the real deal,” he said in an interview with the Star.

 

Goncalves is the chairman, CEO and president of Cleveland-Cliffs, a major steel producer in the U.S. that just this month completed a purchase of Canadian steel company Stelco. He said he’s committed to keeping Stelco’s name and the company’s headquarters in Hamilton.

 

Born in Brazil, Goncalves rose through the metals industry there before moving to several U.S. firms.

 

When he took over Cleveland-Cliffs in 2014, the company was a small player, but is now the largest flat rolled steel company in North America.

During the first Trump administration, Canada faced tariffs on steel and aluminum that Prime Minister Justin Trudeau called insulting. On the campaign trail this time, Trump pledged ten per cent tariffs on all goods entering the U.S.

 

The day after Trump’s re-election, Freeland, Canada’s finance minister, said Goncalves’ acquisition of Stelco is proof that the trade relationship will be fine.

“He has been a long-standing supporter of President Trump. He chose to acquire a major Canadian steelmaker. Now, would he do that if he did not believe in the fundamentals of the economic relationship between our two countries? I don’t think so.”

 

Cleveland-Cliffs’ political action committee has supported both Democratic and Republican candidates. In an interview on CNBC just days before the 2024 election, he said both Trump and Vice-President Kamala Harris understand the value of his industry.

 

“As far as steel goes, we are going to be OK no matter who is the next president of the United States.”

 

Goncalves told the Star Freeland is representing him appropriately, and that Trump’s tough talk on trade shouldn’t apply to Canada.

 

“Canada and the U.S. should not even be in the conversation when we talk about other countries. We see the two countries really as the only close ones that you could claim in this complicated world,” he said.

 

He said Canada’s economy is closely connected to the U.S. and also has critical minerals America needs, which it is currently buying from unfriendly countries like Russia and China.

 

“I feel like it’s good practice to carve out Canada, but it’s not a favour, it’s a necessity.”

 

Despite that close relationship, many of Trump’s early picks for his new administration have been highly critical of Canada.

 

Congresswoman Elise Stefanik, who has been picked as UN ambassador, said Canada wasn’t living up to its trade obligations. Mike Waltz, Trump’s choice for national security adviser, cheered a clip of Conservative Leader Pierre Poilievre attacking Trudeau in question period, writing, “This guy is going to send Trudeau packing in 2025.”

 

Trump’s likely pick for Secretary of State, Marco Rubio, was highly critical of Canada’s program to allow Gazans to come to Canada on temporary visas.

 

Goncalves said he feels the people around Trump understand that on trade, Canada is different, and highlighted Ottawa’s decision to match U.S. tariffs on Chinese steel, aluminum and electric vehicles.

 

“That’s the type of thing that I believe the future Trump administration will appreciate,” he said.

 

Goncalves said too many U.S. allies say the right things, but their actions try to undercut the U.S. economy.

 

“We don’t like countries that talk out of both sides of their mouths,” he said, singling out Mexico and Japan as two U.S. allies that speak positively about the U.S., but make economic moves that hurt America’s economy.

 

“These fake friends or friends of convenience will not have a good time when President Trump goes back to the White House.”

Ontario Premier Doug Ford said Tuesday that Canada should consider a new trade agreement with the U.S. alone, leaving Mexico out of the trade deal. Mexico has not matched Canada and U.S. tariffs on steel, aluminum and EVs and Ford argued they were being used to skirt tariffs.

 

“If Mexico won’t fight transshipment by, at the very least, matching Canadian and American tariffs on Chinese imports, they shouldn’t have a seat at the table or enjoy access to the largest economy in the world,” he said on social media.

 

Goncalves said Ford’s suggestion is in line with what the new Trump administration will want.

 

“That’s actually extremely in sync with Donald Trump’s playbook. He doesn’t like multilateral trade agreements. He likes bilateral trade agreements.”

 

Freeland was more circumspect, but in a news conference Wednesday said she has heard similar concerns about Mexico from people in the Trump administration and she shares them.

 

“I have heard from them, actually. I’ve heard also from the Biden administration, and I’ve heard also from U.S. business leaders some real concerns about whether Mexico is fully aligned when it comes to its policies vis-à-vis China.”

 

 

 

This article was first reported by The Star